Meridian Sec 2024 POA P2 Insert

MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) Name:Class: Sec _____Index No.: _______4E5N MERIDIAN SECONDARY SCHOOL PRELIMINARY EXAMINATION 2024PRINCIPLES OF ACCOUNTS Paper 2 7087/02 23 August 2024 SECONDARY 4 EXPRESS / 5 NORMAL (ACADEMIC) 2 hours INSERT READ THESE INSTRUCTIONS FIRSTThis insert contains the data for Question 1. For Examiner’s UseTotal MarksThis insert consists of 2 printed pages.[Turn over

MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) Data for Question 1Wong owns an advertising business, providing advertising services to his customers. The following balances were extracted from the books of the business on 31 December 2023. $Fixtures and fittings 350 000Equipment 70 000Capital120 000Drawings3 000Advertising fee revenue948 000Rent expense90 000Salaries85 700General expenses20 550Cash at bank 567 050 5% Bank loan 160 000Interest expense7 000Trade receivables 45 000Allowance for impairment of trade receivables 10 300Additional information1As at 31 December 2023, (i)$22 000 of rent expense had been paid in advance. (ii)Interest on bank loan had not been fully paid.2A trade receivable who owed $3 000 was declared bankrupt during the year. The debt has not yet been written off.3The business decided to make an allowance for impairment of trade receivables based on 8% of its remaining trade receivables.4Depreciation is at 20% per annum for fixtures and fittings using straight line method and at 10% for equipment using reducing balance method. 5One-quarter of the bank loan was due for repayment on 1 February 2024. 6During the year, the business issued an invoice of $17 000 for commission not yet received. This has not yet been recorded in the books.